Hyundai and Kia may share a lot of the same technologies across their cars, but their market strategies couldn’t be more different.
Over the last year, the Korean automakers have greatly varied their approaches to the South African landscape, with Hyundai focusing more on affordability while Kia is shifting upmarket.
Carving your own identity
Kia and Hyundai are two distinct brands, though the former was acquired by the latter in 1997, and Hyundai still has a controlling stake in Kia of around 33% as of 2024.
Consequently, most of the companies’ vehicles tend to share a platform and engines, which is not unusual for the industry as it saves a lot of time and money on research and development.
The end result is that many of Hyundai’s cars have a “twin,” and vice versa with Kia, which you can see from the list of models below:
- Hyundai Grand i10 – Kia Picanto
- Hyundai i20 – Kia Rio
- Hyundai Venue – Kia Sonet
- Hyundai Creta – Kia Seltos
- Hyundai Tucson – Kia Sportage
- Hyundai Santa Fe – Kia Sorento
Again, this is nothing new within the auto industry, with something like the Toyota Starlet and Suzuki Baleno being another good example of so-called “badge engineering.”
However, this practice can present an issue when these companies are competing with one another while essentially offering the same product, which can lead to one model being favoured over another thanks to brand recognition.
To use the Toyota and Suzuki example again, the Starlet outsells the Baleno by a wide margin in South Africa simply because Toyota is a more popular and familiar brand to most consumers.
It’s a similar story with Hyundai and Kia, as the former is consistently the fourth best-selling brand in the country while the latter is a fringe top 10 entry.
However, all of this is starting to change, as the Korean carmakers are adjusting their strategies to focus on very different segments.
Kia is generally perceived as the more premium brand of the two, and the manufacturer is leaning into this identity with a bigger emphasis on its more prestigious products like the Sportage midsize SUV.
Hyundai, on the other hand, is trying to maintain its position as a top-performing brand in South Africa by downscaling its line-up to better adjust to today’s budget-conscious households.
This can be seen in the catalogues of both carmakers, which have changed a lot over the last few years.
Notably, Kia no longer sells the B-segment Rio hatchback, which was one of the brand’s more affordable options.
In contrast, the i20 is still one of Hyundai’s most popular cars, frequently appearing among the best-selling hatchbacks in the country.
It’s a similar case with the Picanto and the Grand i10, as the latter is easily Hyundai’s best-seller while the Picanto is no longer a top pick for motorists.
These days, it’s the Sonet crossover that most Kia buyers are gravitating towards, which shows how the two names are starting to carve a niche for themselves.
Hyundai has also gone a step further by introducing the new Exter, an entry-level SUV based on the i10 that slots below the Venue at a starting price of R269,900.
Kia has made no indication that it will make a similar product for our market, but it did recently launch a more affordable specification for the Sonet that cut its price by a considerable R67,000, ending with a new starting tag of R299,995.
It’s a strategy that shows Kia is doubling down on the Sonet’s success with a more obtainable option, while not diluting the brand’s premium image with a cheaper entry-spec SUV.
Hyundai seems to be thinking along different lines, however, as it recently pulled the C-segment Kona crossover due to low sales.
Within the existing line-up, Kia and Hyundai are also putting in a lot of work to ensure that their “twin” models now have a distinct identity.
The most recent example of this is the Seltos, which was recently updated and now offers eight derivatives with three different engines.
Its counterpart, the Creta, only has three models with a single powertrain between them.
However, Hyundai also offers the Grand Creta, which is a moderately affordable seven-seater SUV – something that Kia does not have an equivalent for in South Africa.
Another distinction can be made with the cars’ styling, as Kia is a fan of elements like contrast black-and-white artificial leather upholstery.
Hyundai, meanwhile, likes to give its flagship vehicles the “N” treatment, in reference to its performance division, which can be seen on the i20, Venue, and Tucson N Lines with their aggressive exhausts, red sports seats, aluminum pedals, and other sporty accoutrements.
It’s another illustration that Kia is focusing on its luxury image, while Hyundai is sticking with a more mass-market, enthusiast approach.
Join the discussion